Start from the posted T-accounts and the adjusted trial balance that Davis Consulting prepared for the company at December 31.

At December 31, the business gathers the following information for the adjusting entries:
a. Accrued service revenue, $ 550.
b. Earned $ 700 of the service revenue collected in advance on December 21.
c. Office supplies on hand, $ 200.
d. Depreciation on equipment, $ 30; Depreciation on furniture, $ 70.
e. Accrued $ 685 expense for administrative assistant’s salary.

1. Complete the worksheet at December 31. (Optional)
2. Prepare an income statement for the month ended December 31.
3. Prepare a statement of retained earnings for the month ended December 31.
4. Prepare a classified balance sheet (report form) at December 31.
5. Journalize and post the closing entries at December 31. Denote each closing amount as Clo. and each account balance as Balance.
6. Prepare a post-closing trialbalance.

  • CreatedJanuary 16, 2015
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